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Prices of the cars
#9
Corporate costs are divided into the number of cars produced, regardless of the number of different models.

Here is a line for line the actual code used to calculate the TPC:
http://steamcommunity.com/app/285110/dis...5138663557


Quote:Moreover, shouldn't any capital expenditures be taken out of working capital, and not be figured in to the profit cost per vehicle sold?

Then your cost per unit will be lower. People will their cars higher than that number. Sell all their vehicles, and still not make a profit. And they won't know how much they need to price the vehicles to make a profit.

Quote: I mean, that's how real corporations operate. It seems that you probably have some serious calculation errors in the program when you figure these costs. I understand the math above, but, I've worked for several large corporations and this is not the way they calculate profits.

There are hundreds of way to calculate "profits." TPC is just a simple Costs Per Unit for that month. You sell all your vehicles for more than that and you will turn over a profit for that month. No more, no less. Sure, capital expenses can be moved away from the Cost Per Unit. Accountants do this all the time to make things look profitable. But that doesn't change the break even amount needed for that time period.

That being said, TPC has no effect on the actual Profits/Loss in the game. It is just a very basic indicator at how much you have to price the vehicles to break even. If it's high after your branches/factories are done being built, then you have other expenses keeping it that high.

http://smallbusiness.chron.com/determine...80184.html

Quote:Capital expenditures should ONLY be taken from working capital, not figured in to unit costs.
Nothing is figured into the Unit Costs, The TPC is just telling you what you need to sell all your vehicles at to break even for that month.

Quote: The reason for this is rounding errors. I'm 100% positive you have serious rounding errors in your calculations, and when a company grows to a global scale they compound.
You can check the code in the link above. It's kinda hard to have rounding errors when it's a simple: ALLCosts/number of models produced) + unit costs...

If you want to double check, write down the number of cars you produce, multiply it by the TPC numbers you have (Remember Model A * Model A TPC + Model B * Model B TPC, etc) then see if that's higher than your expense numbers next turn.



Quote: I was profitable until I expanded in to Asia and immediately began loosing money, after only opening 6 branches and 1 factory. I urge you to take a look at how you are going about calculating the profits and make an attempt to bring it in line with the way actual corporations work.
That has nothing to do with TPC. TPC is just a guessimate at how much you need to sell your vehicles for to break even.

If your actual costs increase for more than 1 turn, then you have other issues. TPC does not effect costs or profitability of anything in the game.
Look at your expense reports in the reports and see if anything is much higher now. Or upload the save game(zip the file) and I'll look for you.
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Messages In This Thread
Prices of the cars - by clovisgr - 11-18-2015, 09:49 AM
RE: Prices of the cars - by Eric.B - 11-18-2015, 10:09 AM
RE: Prices of the cars - by Preliator - 12-27-2015, 01:31 PM
RE: Prices of the cars - by WolveNZ - 12-27-2015, 05:35 PM
RE: Prices of the cars - by Eric.B - 12-27-2015, 07:16 PM
RE: Prices of the cars - by jkemmery - 02-16-2016, 02:41 PM
RE: Prices of the cars - by Eric.B - 02-16-2016, 05:50 PM
RE: Prices of the cars - by jkemmery - 02-17-2016, 10:40 AM
RE: Prices of the cars - by Eric.B - 02-17-2016, 01:05 PM
RE: Prices of the cars - by jkemmery - 02-18-2016, 01:15 PM

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